The critique of socialism and the defense of classical liberal institutions

Throughout his life Hayek criticized socialism, often contrasting it with a system of free markets. Although his earlier critiques were based on economic grounds, he later drew upon political, ethical, and other arguments in making his case.

His economic arguments themselves had many dimensions. Hayek noted, for example, that market prices, which reflect the appraisal of millions of market participants, are essential for entrepreneurial calculation; they allow firm owners to choose the most affordable combinations of technologically feasible inputs. Hayek asserted that in a world of constant change—in which ... (100 of 3,846 words)